A variable life policy combines life insurance coverage with tax-favored investment options.

Question

Quizplus · Accepted Answer

A variable life policy offers both life insurance coverage and investment options. The policyholder can choose to invest the cash value of the policy in various investment options, such as stocks, bonds, and mutual funds. These investments grow tax-deferred, and the policyholder can use the accumulated funds to pay policy premiums, purchase additional coverage, or cash out the policy.

A Variable Life Policy Combines Life Insurance Coverage with Tax-Favored